Interim Budget: Affordable housing to get the much needed push, feel developers

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Realty players of Delhi-NCR have expressed satisfaction over measures taken in the Interim Budget. According to Prashant Tiwari, Chairman, Prateek Group: “We are very happy to hear of the proposals to extend the time limit for completing affordable housing projects to earn a tax holiday under 80IBA. This will bring a much-needed breather for some projects which have struggled to complete for various reasons. Policy changes like Rera and Benami Transaction Prohibition Act have helped bring a lot of transparency in the real estate sector. We look forward to working with the government in the coming years to ensure that the Indian real estate sector can grow as fast as possible and become a showcase to the world. The middle class will benefit from the benefits offered for the second home as well.”

From L to R: Prashant Tiwari, Haris Murshid & Himmat Singh

Himmat Singh, CEO, Bayaweaver Limited; “We had a lot of hopes from the budget, some of which have been fulfilled while others remain unheard.  Finance Minister’s proposal of making more homes available under affordable housing, the benefits under Section 80-IBA of the Income Tax Act is being extended for one more year, i.e. to the housing projects approved till 31st March 2020 brought some relief to the sector.  However, Finance Minister has tried to give a push indirectly to the sector by proposing the extension of the exemption from levy of tax on notional rent, on unsold inventories, from one year to two years.  Increasing the benefit of rollover of capital gains under section 54 of the Income Tax Act from investment in one residential house to two residential houses for a taxpayer having capital gains up to Rs 2 crore has given some reason to cheer to the second home buyers.  This would help in attracting buyers/investors to invest in the sectors which are much needed at this point in time. Increasing the income tax slab to Rs. 5 lakh is a welcome step and a much-needed relief for the common man. Much to our disappointment, Industry status and single window clearance system could have been the biggest game-changing reforms for real estate sector which were not even mentioned in the budget.”

Haris Murshid, Vice President-Sales, Skydeck Infrastructure said:  “The Interim Budget 2019 has a lot to cheer about for real estate it has almost covered everything which real estate developers were looking for, such as a fresh lease of life to affordable housing, extension of time period from 1 to 2 yrs on levy on tax on notional rent on the unsold inventory, benefit of rollover under section 54 of IT  act be increased from 1 -2 residential houses, TDS threshold increased from Rs 1.8 lakhs to 2.4 lakhs will give a big boost to the housing sector sales and above all the tax bracket is increased to 5 lakhs.”

 

 

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